A question regarding mark to market (MTM)

Discussion in 'Taxes and Accounting' started by sleepwell!, Mar 31, 2018.

  1. After you tell/apply to IRS that you want MTM accounting, do they ever reply to you that your application is successful or not? Or, you are in the dark and have to wait until next year's tax refund result and figure out you did/did not pass?

    Thanks!!
     
  2. sprstpd

    sprstpd

    They never responded to my application. Assuming my MTM application was successful (it has been more than 10 years ago that I submitted it), it might mean that they contact you in case they reject your application. I have a feeling though that your paperwork just gets filed somewhere and no one looks at it unless they decide to audit you.

    It seems like if you start filing tax returns under MTM, and the IRS accepts your tax money and does not audit you for several years, then they might lose the chance to contest your MTM application. This is all conjecture and I am no tax expert.